Major players TPG and GIC are at the helm of a €6.7 billion acquisition of Techem, with support from Canadian pension funds.
Singapore's GIC Leads €6.7 Billion Acquisition of Techem Group
In a significant move, Singapore's sovereign wealth fund, GIC, has announced its intention to acquire Techem Group, a leading platform for decarbonising and digitising the building sector. The acquisition, valued at approximately €6.7 billion, marks the largest transaction to date for TPG Rise Climate, a private equity fund focused on climate solutions.
Techem Group, headquartered in Eschborn near Frankfurt, Germany, continues to provide energy efficiency services to over 13 million dwellings across 18 countries. Their services aim to reduce energy consumption and CO2 emissions in the real estate sector.
GIC's Chief Investment Officer for Infrastructure, Boon Chin Hau, has commented on Techem's proven track record and the increasing prevalence of sub-metering in Europe. Ang Eng Seng, CIO for Infrastructure at GIC, also expressed his confidence in Techem's growth potential.
TPG and GIC will support Techem in expanding its efforts to digitise and decarbonise the building sector. The deal is subject to regulatory approval and customary closing conditions before final completion in early 2025. The acquisition is expected to close in the first half of 2025.
CDPQ and Ontario Teachers' Pension Plan have acted as co-investors in the transaction. However, they are not mentioned as providing support for Techem's expansion. TPG Rise Climate, the dedicated climate investing strategy of TPG, will act as the lead investor.
The transaction highlights the growing interest of pension funds in sustainable investments. By acquiring Techem, GIC is demonstrating its commitment to supporting climate solutions and contributing to a more sustainable future. The acquisition value remains unchanged and the acquisition will not affect Techem's headquarter location in Eschborn near Frankfurt, Germany.
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